Strides Pharma Science

There has been some correction in the past few days. Mgmt wants to give off the Api division. Very strange that they acquired Shasun for the purpose of backward integration. I understood that they want to hive-off the commodity-type API division.
Based on the recent Conf call, Mgmt seem positive and assured that almost none of the acquisitions are mistake. However some are taking more time to show the benefit . There was also a hint of demerging the Biotech division .

Disclosure : Invested

I exited because it became almost impossible to track and estimate future earnings growth. They would buy something and then sell just to keep everyone busy. Why to pay so much to IB guys? They sound as if everything is in control and then on result day come out with excuses.

Is there any action here? I have heard that no of approvals are in the pipeline with US FDA…Can anyone advise on the future prospects ?

As i a shareholder , i would say there is way too much action in this company :slight_smile: . Iam not aware of any other company which has done so many mergers, acquisition, hiving off ,amalgamations (12 if i recall correctly in last two years) . To its credit,Strides has one of the best US FDA compliance record in the industry and yes , there are number of key differentiated product whose approval is due in the next few months . However , the company’s most profitable line of business i.e institutional anti-malarial business in africa is facing slow down due to donor cutbacks and increased competition for tenders this year . the company is going slow on their biosimilar business , they had heralded as the next big thing but looks like that will take 4-5 years to fructify.

i have scaled down holding bought in 2012 over the last year as i felt way too much corporate restructuring was happening benefiting investment bankers and M&A lawyers than shareholders.

I bought stock yesterday after decent time bound correction in the counter. I like mgmt commentary on 15-20 approvals to come from US FDA this year and 80% growth will come organically. It is available at MCap of 8000+ crores which could give a good low base effect. If approvals come through it may be a candidate of 25% cagr for atleast next 3 years.

Disc : Invested. Views may be biased.

It seems it is just a rumour written by livemint. Company has denied such funding from KKR.

Strides have gone through a series of mergers in the past 3-4 years and is finally going to do a demerger for focusing on the respective businesses to create more value for shareholders.

Check out the links to the articles to study it’s journey purely for research purposes.

Strides seems to have lost its way since the shasun merger in 2015. The market didn’t seem to take too kind and the scrip was full of bears selling it at every rise. To be fair, strides did not have any USFDA issues like other pharma cos. Recently hdfc sec has given a positive long term view.

Disc: Not invested but tracking closely

I believe Professor Mankekar has exited Strides this week .

any reasoning behind this observation?

I believe recent beating of the stock price is over reaction of Mr. Market…here is report from Motilal Oswal
http://www.motilaloswal.com/site/rreports/HTML/636451270109180876/index.htm

http://www.motilaloswal.com/site/rreports/HTML/636383015393613121/index.htm

Indeed it is a fact Professor Mankekar exited his stake and this will reflect in the next quarter shareholding pattern.
The further downward pressure by Mr. Market may have been an over reaction to the exit.

hmmm…I wonder if any one can explain the downside with appropriate reasoning…as I see the management taking right steps to diversify and increase the business.

@aammiitt2 @Wolf @hitesh2710 @sumi00 @idikasony @aravindms1us
Disclaimer: Invested since 2014

I exited my positive n sometime back with little gain.

Disc: Exited and not tracking.

I had invested despite sound advice from the senior guy in a peer company. Regretted, sold and no intention to look back.

disc: No stakes

@sumi00 @aammiitt2 would you be able to share the rational behind you exit?

That’s meaningless to discuss now. What is your investment thesis?

do you still hold STAR?